Berendsen's (BRSN) half-year results showed how much progress the facilities management and linen supplier has made in converting its profits into cash, with free cash flow of £50.3m representing an impressive conversion rate of 112 per cent of post-tax profits. Underlying revenues grew by 2 per cent in the period, which translated into an 8 per cent rise in operating profits to £71.8m.
The company seems to be benefiting from greater outsourcing of cleaning and facilities management contracts and it was this segment of the business that underpinned the results. Revenue from the facility operation was 16 per cent ahead at £123m and underlying profits shot up by 18 per cent to £30.4m. And with Berendsen firmly establishing itself in Poland, Germany and the Czech Republic, the division also has the greatest scope for international expansion.